Nonprofit Accounting Basics

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Revenues/Deferred Revenue

Originally Posted: December 1, 2009
  • Establish policies for revenue recognition.  Certain types of revenue (including: dues; subscriptions; and meeting registration fees) may be received in advance of the product or service

Receivables

Originally Posted: December 1, 2009
  • Compare all check logs for cash receipts to the amounts applied to receivables.  This will be done by an individual separate from those processing cash receipts and accounts receivable.

Fixed Assets

Originally Posted: December 1, 2009
  • Establish a policy for fixed assets detailing which fixed assets are capital (depreciated rather than expensed) assets.
  • Require prior approval of all fixed asset acquisitions and dispo

Investments

Originally Posted: December 1, 2009
  • Establish an investment policy.
  • Require that all proceeds from investment activity go directly to a specific bank account of the organization.
  • Update authorized individuals on

General Information

Originally Posted: December 1, 2009
  • The internal control system needs to be documented (the expected results or outcomes of the system and what everyone does need to be put in writing) and constantly evaluated.  A continuou

Cash

Originally Posted: December 1, 2009

Cash is an area with a high risk of error and fraud.

Internal Controls for Medium-Sized Organizations

Medium-sized nonprofit organizations may have the size and volume of activities that call for internal control systems in excess of the resources available to deliver such systems. This situation does not justify inadequate internal controls. It does emphasize the need to constantly evaluate the internal costs to make sure that scarce resources are best applied.

Policies

Originally Posted: July 16, 2009

Creating a policy is like making a decision when you have time to be thoughtful, to do adequate research, and to consult colleagues and other professionals rather than making decisions in haste as

Starting a Nonprofit

Originally Posted: June 12, 2009
There are well over 1.6 million nonprofits in the United States today.

Sample Amortization Schedule

Originally Posted: June 12, 2009

Please find below a a sample amortization schedule.

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